ANTI-­‐CORRUPTION APPG INFO PACK UK ANTI-­‐CORRUPTION ARRANGEMENTS INTRODUCTION PURPOSE The purpose of the An<-­‐Corrup<on Info Pack is to provide:   a summary of the types of corrup2on addressed by UK law, in line with the UK’s commitments to implement the UN Conven<on Against Corrup<on (2003) and the OECD Conven<on on Comba<ng Bribery of Foreign Public Officials in Interna<onal Business Transac<ons (1997),   a summary of the administra2ve arrangements and mechanisms to prevent, detect and prosecute corrup<on in the UK and abroad, and   a summary of current issues raised by organisa<ons ac<ve in the an<-­‐corrup<on policy arena, and forthcoming legisla<ve and policy processes rela<ng to the UK’s an<-­‐corrup<on framework that are scheduled or an<cipated in the <meframe to 2015. This Info Pack was prepared by Tearfund. WriZen by Anne Messer and Melissa Lawson. INTRODUCTION NAVIGATION The Info Pack has three levels, with increasing detail:   Corrup2on Framework Map: this provides an at-­‐a-­‐glance overview of the UK’s main corrup<on offences and the associated preven<on and enforcement measures, including the key legisla<ve instruments and administra<ve arrangements. Hyperlinked to Explanatory notes.   Explanatory notes: for those who are interested in more detail on each crime or preven<on/
enforcement measure, the explanatory notes contain informa<on on the interna<onal instruments, the relevant legisla<ve and policy instruments, and set out details of the current administra<ve arrangements and rela<onships. There are also brief notes on the current policy challenges noted by NGOs and known legisla<ve and policy processes to 2015. Hyperlinked to Informa<on briefings.   Informa2on briefings: for those who are interested in more detail on the policy challenges and the known legisla<ve and policy processes relevant to each crime or preven<on/
enforcement measure, the informa<on briefings provide further detail on the current policy challenges and known legisla<ve and policy processes, and hyperlinks to relevant organisa<ons, documents and research. NOTE: These Informa-on briefings were dra4ed by Tearfund in November 2012 in their role as clerk to the APPG. They were wriDen to provide background informa-on only and do not necessarily represent Tearfund’s official policy posi-ons, the policy of the An--­‐Corrup-on APPG or the policy of the APPG members. CORRUPTION FRAMEWORK MAP 1 CLICK HERE TO GO TO GLOSSARY The UK has adopted and implemented a number of corrup<on offences which correspond and comply with the requirements of Ar<cles 15-­‐19, 21 and 23 of the UN Conven<on against Corrup<on (2003) and the OECD An<-­‐Bribery Conven<on (1997). BRIBERY giving or receiving something of value in exchange for ac<ng or refraining from ac<ng, in performance of du<es , official or otherwise (incl. foreign officials)* UK law and guidance: Bribery Act 2010 , Public Bodies Corrupt Prac<ces Act 1889, Preven<on of Corrup<on Act 1906 and An<-­‐terrorism, Crime and Security Act 2001 (UNCAC Arts. 15-­‐16, 21) Preven2on & Regula2on: BIS, DFID, UKTI, FCO, MoJ Enforcement: SFO, City of London Police (OACU), SOCA, CPS In Scotland – The Crown Office & Procurator Fiscal Service (“COPFS”) TRADING IN INFLUENCE EMBEZZELMENT/ FRAUD ABUSE OF FUNCTION giving or receiving something of value in exchange for improperly performing a public duty* UK law and guidance: Fraud Act 2006, Serious Crime Act 2007, Parliamentary Standards Act 2009, Bribery Act 2010, Const. Reform and Governance Act 2010, Civil Service Code, Special Advisers’ Code, Ministerial Code, MPs’ Codes of Conduct (UNCAC Art. 19) Preven2on & Regula2on: Cabinet Off, Plmt Omb, House of Commons and House of Lords CommiZees & Registers of Interests, Home Off, MoJ theb of entrusted funds (e.g. personal use of government resources)* MONEY LAUNDERING UK law and guidance: Theb Act 1968, Natl Audit Act 1983, Audit Comm Act 1983, Proceeds of Crime Act 2002, Fraud Act 2006, Serious Crime Act 2007, Const. Reform and Governance Act 2010, Civil Service Code, Special Advisers’ Code, Ministerial Code, MPs’ Codes of Conduct (UNCAC Art 17) Preven2on & Regula2on: FSA, Cabinet Off, NAO, Audit Comm, Home Off, Agencies, MoJ Enforcement: SFO, City of London Police (OACU & Fraud ), SOCA, Met Police, CPS, COPFS the process of concealing the source of money obtained by illicit means* UK law and guidance: Proceeds of Crime Act 2002, Serious Organised Crime and Police Act 2005, Serious Crime Act 2007, Money Laundering Regs 2007, Money Laundering (Amdt) Regs 2012 (UNCAC Art. 23) Preven2on & Regula2on: HMRC, FSA, HMT , MoJ, OFT giving or receiving something of value, in acknowledgment of influence over a third party’s decision or ac<on* UK law and guidance: Parliamentary Standards Act 2009, Bribery Act 2010, Const. Reform and Governance Act 2010, Civil Service Code, Special Advisers’ Code, Ministerial Code, MPs’ Codes of Conduct (UNCAC Art. 18) Preven2on & Regula2on: Cabinet Off, Plmt Omb, House of Commons & House of Lords CommiZees & Registers of Interests, Agencies , MoJ Enforcement: Met Police (PoCU), SFO, CPS, COPFS Enforcement: Met Police (PoCU), SOCA, HMT, HMRC, CPS, SFO, FSA, OFT, COPFS Enforcement: Met Police, City of London Police, CPS, SFO, COPFS *Defini<on adapted from UNCAC. A glossary of terms and acronyms used is available here. CORRUPTION FRAMEWORK MAP 2 CLICK HERE TO GO TO GLOSSARY Preven<on, detec<on and enforcement of the UK’s corrup<on offences are facilitated by a number of key suppor<ng measures, which enable the UK to meet its obliga<ons under Art 20, 26, 32, 33 and 46 of the UN Conven<on against Corrup<on (2003) and the OECD An<-­‐Bribery Conven<on (1997). OFFENCE OF ILLICIT ENRICHMENT a significant increase in the assets of a public official that cannot be explained in rela<on to their lawful income* UK law and guidance: Proceeds of Crime Act 2002, Serious Organised Crime and Police Act 2005, Money Laundering Regula<ons 2007, Serious Crime Act 2007, Const. Reform and Governance Act 2010, Money Laundering (Amdt) Regula<ons 2012, Civil Service Code, Special Advisers’ Code, Ministerial Code, MPs’ Codes of Conduct and registers of interests (UNCAC Art. 20) Relevant agencies & organisa2ons: Met Police (PoCU), SOCA (UKFIU), HMRC, HoC & HoL Standards Ctees, Parl Commissioner for Standards, IPSA MUTUAL LEGAL ASSISTANCE PROTECTION OF WITNESSES LIABILITY OF LEGAL PERSONS companies and other bodies corporate are treated as persons under an<-­‐corrup<on laws and may be prosecuted as such* UK law and guidance: Companies Act 2006, Money Laundering Regula<ons 2007, Bribery Act 2010, common law (UNCAC Art. 26) Relevant agencies & organisa2ons: SFO, BIS, law enforcement agencies police protec<on of witnesses, experts and vic<ms, before, during and aber a trial* PROTECTION OF WHISTLEBLOWERS UK law and guidance: Contempt of Court Act 1981, Youth Jus<ce and Criminal Evidence Act 1999, Serious Organised Crime and Police Act 2005, Coroners and Jus<ce Act 2009, Criminal Procedure Rules 2010 (UNCAC Art. 32) Relevant agencies & organisa2ons: CPS, CofL Police, Met Police, other police agencies protec<on of persons who report suspicion of corrup<on, whether or not a prosecu<on follows* UK law and guidance: Public Interest Disclosure Act 1998, Serious Organised Crime and Police Act 2005 (UNCAC Art. 33) an agreement between two countries to collect and share informa<on to help enforce criminal laws * UK law and guidance: Criminal Jus<ce (Interna<onal Co-­‐opera<on) Act 1990, Proceeds of Crime Act 2002, Extradi<on Act 2003, Crime (Interna<onal Co-­‐opera<on) Act 2003, mul<lateral conven<ons, bilateral trea<es (UNCAC Art. 46) Relevant agencies & organisa2ons: FCO, Home Off (UKCA), Met Police, SFO, HMRC, CPS, FSA Relevant agencies & organisa2ons: BIS, law enforcement agencies *Defini<on adapted from UNCAC. A glossary of terms and acronyms used is available here. EXPLANATORY NOTE: Bribery CLICK HERE TO GO TO GLOSSARY CLICK HERE TO GO TO CORRUPTION MAPS Bribery is giving or receiving something of value in exchange for ac-ng or refraining from ac-ng, in performance of a duty, whether official or not (including foreign officials). Interna2onal Conven2ons: OECD Conven<on on Comba<ng Bribery of Foreign Public Officials in Interna<onal Business Transac<ons (1997); UNCAC Arts. 15-­‐16, 21; CoE Criminal Law Conven<on on Corrup<on (2009), Art. 2-­‐11; CoE Civil Law Conven<on on Corrup<on (2009) UK legal instruments: Serious Crime Act 2007, Bribery Act 2010, Bribery Act 2010 Guidance (for companies), CPS/SFO Joint Prosecu<on Guidance, An< Terror Crime & Security Act MoU on Bribery and Corrup<on UK administra2ve framework: POLICY PREVENTION & REGULATION Public sector
MoJ (Criminal Law Policy Unit) ENFORCEMENT & PROSECUTION Private sector
Cabinet Off Civil Service & Ministers’ Code Compliance HoC and HoL Code Compliance DFID Policy & Preven-on (overseas) BIS Policy & Preven-on (UK) SFO Inves-ga-on & Prosecu-on IPSA MPs’ pay & expenses Each Dept & Agency Code compliance FCO Policy & Preven-on (overseas) UKTI Preven-on (overseas) SOCA Intelligence Inves-ga-on & Referral CofL Police (Overseas An<-­‐
Corrup<on Unit) Inves-ga-on CPS/DPP Prosecu-on Policy challenges: CLICK HERE TO VIEW BRIBERY INFO BRIEFING -­‐  Expanding the territorial reach of the Bribery Act to the UK’s Overseas Territories and Crown Dependencies -­‐  Managing risk that bribes sourced through certain intermediaries may not be caught -­‐ Ensuring adequate funding of key preven<on and enforcement agencies -­‐  Ensuring appropriate penal<es awarded on convic<on -­‐  Resolving overlapping agency remits; likelihood of duplica<on of roles, especially with regard to private sector -­‐  Ensuring collec<on and publica<on of crime-­‐specific data on prosecu<ons, convic<ons, penal<es Current legisla2ve and policy processes: Crime and Courts Bill 2012; forthcoming post-­‐legisla<ve scru<ny of the Bribery Act 2010; FCO White Paper (2012): The Overseas Territories: Security, Success and Sustainability; forthcoming Government response to OECD review of UK implementa<on of an<-­‐bribery conven<on EXPLANATORY NOTE: Embezzlement/Fraud CLICK HERE TO GO TO GLOSSARY CLICK HERE TO GO TO CORRUPTION MAPS Embezzlement is the the4 of entrusted funds (e.g. personal use of government resources). Interna2onal Conven2ons: UNCAC Art. 17 UK legal and administra2ve instruments: Theb Act 1968, Na<onal Audit Act 1983, Audit Commission Act 1983, Proceeds of Crime Act 2002, Fraud Act 2006, Serious Crime Act 2007, Parliamentary Standards Act 2009, Const. Reform and Governance Act 2010, Civil Service Code, Special Advisers’ Code, Ministerial Code, MPs’ Codes of Conduct, CPS legal guidance on fraud and theb offences UK administra2ve framework: POLICY PREVENTION & REGULATION Public sector
MoJ (Criminal Law Policy Unit) DCLG Local govt audit policy Audit Comn Local govt & NHS auditor
NAO Dept & agency auditor
ENFORCEMENT & PROSECUTION Private sector
Cabinet Off Civil Service & Ministers’ Code Compliance HoC and HoL Code Compliance DFID Policy & Preven-on (overseas) BIS Policy & Preven-on (UK) IPSA MPs’ pay & expenses Each Dept & Agency Code compliance FCO Policy & Preven-on (overseas) UKTI Preven-on (overseas) SFO Inves-ga-on & Prosecu-on Met Police Inves-ga-on SOCA Intelligence Inves-ga-on & Referral CofL Police (Overseas An<-­‐
Corrup<on Unit) Inves-ga-on CPS/DPP Prosecu-on Policy challenges: CLICK HERE TO VIEW EMBEZZLEMENT/FRAUD INFO BRIEFING -­‐  Monitoring the outsourcing of the Audit Commission’s func<ons to four private audit firms for the 2012-­‐13 audit -­‐  Enhancing the efficiency and effec<veness of parliamentary accountability and integrity ins<tu<ons, including the IPSA -­‐  Acknowledging the links between overseas corrup<on, organised crime, and corrup<on within the UK, including Government sectors -­‐  Ensuring adequate collabora<on and coopera<on across preven<on, regula<on and enforcement bodies -­‐  Ensuring collec<on and publica<on of crime-­‐specific data on prosecu<ons, convic<ons, penal<es Current legisla2ve and policy processes: Crime and Courts Bill 2012; Local Audit Bill 2011; Triennial review of the CommiZee on Standards in Public Life; forthcoming post-­‐legisla<ve scru<ny of the Parliamentary Standards Act 2009 and the Cons<tu<onal Reform and Governance Act 2010 EXPLANATORY NOTE: Trading in Influence -­‐ 1 CLICK HERE TO GO TO GLOSSARY CLICK HERE TO GO TO CORRUPTION MAPS Trading in influence occurs where B gives something of value to a public official or private individual (P), or where P solicits something of value from B, in acknowledgment of P’s influence over a third party’s decision or ac-on affec-ng B, where that third party is a public official or public administra-ve body (3P). P
£
Influence
B
3P
Decision
Interna2onal Conven2ons: OECD Conven<on on Comba<ng Bribery of Foreign Public Officials in Interna<onal Business Transac<ons (1997); UNCAC Art. 18; CoE Criminal Law Conven<on on Corrup<on (2009), Art. 12; CoE Civil Law Conven<on on Corrup<on (2009) UK legal and administra2ve instruments: The UK’s an<-­‐corrup<on framework addresses trading in influence by UK public officials only. Private individuals and organisa<ons, such as lobbyists, consultants or public rela<ons firms, are not covered. See: Parliamentary Standards Act 2009, Bribery Act 2010, Cons<tu<onal Reform and Governance Act 2010, Civil Service Code, Special Advisers’ Code, Ministerial Code, MPs’ Codes of Conduct, CPS legal guidance on misconduct in public office. UK administra2ve framework: POLICY Cabinet Off Civil Service & Ministers’ standards & Codes Register policy HoC and HoL Standard Ctees PREVENTION & REGULATION Cabinet Off Civil Service & Ministers’ Code Compliance IPSA MPs’ pay & expenses HoC and HoL Registers of Interests ENFORCEMENT & PROSECUTION HoC and HoL Standards & Code Compliance Each Dept & Agency Code compliance Policy challenges and Current legisla2ve and policy processes: see next slide.
Met Police (Proceeds of Corrup-on Unit Inves-ga-ons SFO Inves-ga-on & Prosecu-on CPS/DPP Prosecu-on CofL Police Inves-ga-on EXPLANATORY NOTE: Trading in Influence -­‐ 2 CLICK HERE TO GO TO GLOSSARY CLICK HERE TO GO TO CORRUPTION MAPS Policy challenges: CLICK HERE TO VIEW TRADING IN INFLUENCE INFO BRIEFING -­‐  Enhancing the efficiency and effec<veness of UK Parliamentary accountability and integrity ins<tu<ons -­‐  Ensuring transparency and accountability in interac<ons between lobbyists and public officials, including by ensuring effec<ve implementa<on of the ban on lobbying for reward or gain that applies to MPs (Code of Conduct) -­‐  Managing the risks in sectors where organised crime and corrup<on have been found to be linked (e.g. prisons, social housing) -­‐  Adequately regula<ng the consultancy services maintained by MPs and Peers -­‐  Managing the corrup<on risks inherent in the “revolving door” of public officials moving out of office into private sector, and back into public office again; currently no post-­‐public employment rules for MPs Current legisla2ve and policy processes: Government proposal for statutory register of lobbyists; Triennial review of the CommiZee on Standards in Public Life; forthcoming post-­‐
legisla<ve scru<ny of the Parliamentary Standards Act 2009, the Cons<tu<onal Reform and Governance Act 2010, and the Localism Act 2011; current IPSA consulta<on on ways to remunerate MPs (2012). EXPLANATORY NOTE: Abuse of func<on CLICK HERE TO GO TO GLOSSARY CLICK HERE TO GO TO CORRUPTION MAPS Abuse of func-on is giving or receiving something of value in exchange for performing or failing to perform a public duty, in viola-on of law. Unlike bribery, this is limited to domes-c public officials. Interna2onal Conven2ons: UNCAC Art. 19 UK legal instruments: Fraud Act 2006 (“fraud by abuse of posi<on”), Serious Crime Act 2007, Parliamentary Standards Act 2009, Bribery Act 2010, Const. Reform and Governance Act 2010, Civil Service Code, Special Advisers’ Code, Ministerial Code, MPs’ Codes of Conduct, CPS legal guidance on misconduct in public office. UK administra2ve arrangements: POLICY PREVENTION & REGULATION Cabinet Off Civil Service & Ministers’ standards & Codes Lobbyist Register policy HoC and HoL Standard CommiDees Cabinet Off Civil Service & Ministers’ Code Compliance IPSA MPs’ pay & expenses HoC and HoL Registers of Interests ENFORCEMENT & PROSECUTION HoC and HoL Standrards & Code Compliance Each Dept & Agency Code compliance Met Police (Proceeds of Corrup-on Unit Inves-ga-ons SFO Inves-ga-on & Prosecu-on CofL Police Inves-ga-ons CPS/DPP Prosecu-on Policy challenges: CLICK HERE TO VIEW ABUSE OF FUNCTION INFO BRIEFING -­‐  Enhancing awareness of whistle-­‐blowing laws within the public sector and the wider community -­‐  Ensuring effec<ve implementa<on of the ban on lobbying for reward or gain that applies to MPs (Code of Conduct) -­‐  Enhancing the efficiency and effec<veness of parliamentary accountability and integrity ins<tu<ons; facilita<ng collabora<on and coopera<on across preven<on, regula<on and enforcement bodies -­‐  Managing the risks in sectors where organised crime and corrup<on have been found to be linked (e.g. prisons, social housing) -­‐  Monitoring whether the new legisla<ve basis for the Civil Service Code is achieving the intended integrity gains -­‐  Monitoring whether the new standards regime for local authori<es (under the Localism Act 2011) is maintaining integrity and high standards of ethical behaviour Current legisla2ve and policy processes: Government proposal for statutory register of lobbyists; Crime and Courts Bill 2012; Triennial review of the CommiZee on Standards in Public Life; current IPSA consulta<on on ways to remunerate MPs (2012); forthcoming post-­‐legisla<ve scru<ny of the Parliamentary Standards Act 2009, the Cons<tu<onal Reform and Governance Act 2010, and the Localism Act 2011 EXPLANATORY NOTE: Money Laundering CLICK HERE TO GO TO GLOSSARY CLICK HERE TO GO TO CORRUPTION MAPS Money laundering is the process of, inter alia, concealing the source of money obtained by illicit means. Interna2onal Conven2ons: UNCAC Art. 23; CoE Conven<on on Laundering, Search, Seizure and Confisca<on of the Products from Crime (2005); EU Third An<-­‐Money Laundering Direc<ve (2005/60/EC); CoE Criminal Law Conven<on on Corrup<on (2009), Art. 13 UK legal instruments: Proceeds of Crime Act 2002, Serious Organised Crime and Police Act 2005 (Ch 6), Serious Crime Act 2007, Money Laundering Regula<ons 2007, Money Laundering (Amendment) Regula<ons 2012, CPS Legal Guidance on Money Laundering UK administra2ve framework: POLICY HMT PREVENTION & REGULATION FSA Financial services industry HMRC* ENFORCEMENT & PROSECUTION OFT* * HMRC: Money service businesses; high value dealers; trust/company, services; accountants
* OFT: Consumer Credit &Financial Institutions, & Estate Agents
SOCA Inves-ga-ons Met Police Proceeds of Corrup-on Unit) Inves-ga-ons CPS/DPP Prosecu-on HMT Sanc-ons HMRC Taxa-on of illegi-mate income Policy challenges: CLICK HERE TO VIEW MONEY LAUNDERING INFO BRIEFING -­‐  Ensuring prosecu<on of money laundering facilitators (lawyers, bankers, accountants) -­‐  Managing risk of UK shell companies being used to hide corruptly-­‐acquired assets -­‐  Ensuring adequate iden<fica<on by banking and financial ins<tu<ons of corrupt foreign-­‐sourced money -­‐  Ensuring adequate implementa<on by banking and financial ins<tu<ons of systems to detect poli<cally exposed persons (customer due diligence requirements) -­‐  Clarifying current legal uncertainty with regard to key provisions of EU Third Direc<ve -­‐  Managing the HSBC money laundering scandal and US Senate inves<ga<on; maintaining the reputa<on of Bri<sh banking system and ins<tu<ons Current legisla2ve and policy processes: Financial Services Bill 2012; Crime and Courts Bill 2012; Money Laundering (Amendment) Regula<ons 2012; EU 3rd An<-­‐Money-­‐laundering Direc<ve consulta<on process 2012 EXPLANATORY NOTE: Illicit Enrichment -­‐ 1 CLICK HERE TO GO TO GLOSSARY CLICK HERE TO GO TO CORRUPTION MAPS Illicit enrichment is a significant increase in the assets of a public official that cannot be explained in rela-on to their lawful income. This mechanism facilitates prosecu-on and recovery of assets where there is insufficient evidence to prosecute or convict a public official of more serious corrup-on offences, such as bribery or abuse of func-on. Interna2onal Conven2ons: UNCAC Art. 20, EU Third An<-­‐Money Laundering Direc<ve (2005/60/EC) UK legal instruments: The UK’s an<-­‐corrup<on framework addresses illicit enrichment within the public sector through mul<ple accountability and integrity instruments, which work together with proceeds-­‐of-­‐crime-­‐type enforcement instruments.   Accountability and integrity instruments: Parliamentary Standards Act 2009, Const. Reform and Governance Act 2010, Civil Service Code, Special Advisers’ Code, Ministerial Code, MPs’ Codes of Conduct, House of Commons Register of Financial Interests, House of Lords Register of Financial Interests, Register of Interests for Members’ Secretaries and Research Assistants.   Enforcement instruments: Proceeds of Crime Act 2002, Serious Organised Crime and Police Act 2005 (Ch 6), Serious Crime Act 2007, Money Laundering Regula<ons 2007, Money Laundering (Amendment) Regula<ons 2012, CPS legal guidance on proceeds of crime and money laundering. Relevant agencies and organisa2ons: Parliamentary Commissioner for Standards, Independent Parliamentary Standards Authority (IPSA), House of Commons Standards and Privileges CommiZee, Commissioner for Standards in the House of Lords, House of Lords CommiZee for Privileges and Conduct, SOCA (UKFIU), HMRC Monitoring of changes in financial assets by the UKFIU:   The UK Financial Intelligence Unit has na<onal responsibility for receiving, analysing and dissemina<ng financial intelligence submiZed through the Suspicious Ac<vity Reports (SARs) Regime. A SAR is a piece of informa<on which alerts law enforcement that certain client or customer ac<vity -­‐ e.g. a series of large out of character deposits -­‐ is in some way suspicious and might indicate a corrup<on crime. The UKFIU receives over 200,000 SARs each year from various financial ins<tu<ons. Recovery mechanisms:   A person does not have to be convicted of a corrup<on crime for the recovery mechanisms in the Proceeds of Crime Act 2002 to take effect; recovery may be by means of a civil recovery order. When SOCA has reasonable grounds to believe that an increase of assets has occurred due to criminal conduct then it can seek a Civil Recovery Order, whilst HMRC is empowered to issue tax assessments. Policy challenges and Current legisla2ve and policy processes: see next slide. EXPLANATORY NOTE: Illicit Enrichment -­‐ 2 CLICK HERE TO GO TO GLOSSARY CLICK HERE TO GO TO CORRUPTION MAPS Policy challenges: CLICK HERE TO VIEW ILLICIT ENRICHMENT INFO BRIEFING -­‐  Need to ensure that banking and financial ins<tu<ons implement systems to detect poli<cally exposed persons (customer due diligence requirements) -­‐ Ensuring adequate iden<fica<on by banking and financial ins<tu<ons of corrupt foreign-­‐sourced money -­‐  Managing the risks in sectors where organised crime and corrup<on have been found to be linked (e.g. prisons, social housing) -­‐  Need to secure prosecu<on of money laundering facilitators (lawyers, bankers, accountants) -­‐  Adequately regula<ng the consultancy services provided by MPs and Peers -­‐  Clarifying legal uncertainty in the EU 3rd An<-­‐Money Laundering Direc<ve -­‐  Ensuring that the public are aware of how to report corrup<on crimes Current legisla2ve and policy processes: Triennial Review of the CommiZee on Standards and Public Life; Crime and Courts Bill 2012; IPSA consulta<on on ways to remunerate MPs; Financial Services Bill 2012; EU Third An<-­‐Money Laundering Direc<ve consulta<on process 2012; forthcoming post-­‐legisla<ve scru<ny processes for the Parliamentary Standards Act 2009, the Cons<tu<onal Reform and Governance Act 2010 and the Localism Act 2011 EXPLANATORY NOTE: Liability of Legal Persons CLICK HERE TO GO TO GLOSSARY CLICK HERE TO GO TO CORRUPTION MAPS Companies and other bodies corporate, including registered associa-ons and chari-es, are treated as persons under an--­‐corrup-on laws and may be prosecuted as such. Interna2onal Conven2ons: UNCAC Art. 26; CoE Criminal Law Conven<on on Corrup<on, Art. 18; OECD Conven<on on Comba<ng Bribery of Foreign Public Officials in Interna<onal Business Transac<ons (1997) UK legal instruments: Theb Act 1968, Fraud Act 2006, Companies Act 2006, Money Laundering Regula<ons 2007, Bribery Act 2010 and Bribery Act 2010 Guidance (for companies), common law Relevant agencies and organisa2ons: Companies House, BIS, UKTI, DFID, FCO, FSA, HMRC, CPS/DPP, SFO, COPFS, Global Advice Network (www.globaladvicenet.com), Business An<-­‐Corrup<on Portal (hZp://www.business-­‐an<-­‐corrup<on.com/) How companies may be liable: Some laws expressly provide for criminal liability for companies for corrup<on crimes commiZed in the UK, including the Bribery Act 2010, Fraud Act 2006, Theb Act 1968, and the Money Laundering Regula<ons 2007. If no criminal liability is established under a relevant corrup<on law, then:   Corporate liability may be established by making a company vicariously liable for the ac<ons of its employees/agents. Many statutory/regulatory offences impose vicarious liability upon employers (corporate and human) to ensure compliance with the relevant law; or   Corporate liability may be established if the offender was a direc2ng mind and will of the company (the iden<fica<on principle). This applies to all types of offences, including certain offences which require criminal intent. Policy challenges: CLICK HERE TO VIEW LIABILITY OF LEGAL PERSONS INFO BRIEFING -­‐ Ensuring appropriate penal<es with deterrent effect are awarded on convic<on (corporate liability under Bribery Act 2010 is untested) -­‐ Managing risk that bribes sourced through certain intermediaries (e.g. foreign subsidiaries or subcontractors) or paid by non-­‐UK companies listed on the LSE may not be caught -­‐  Encouraging UK crown dependencies and overseas territories to become compliant with the 1997 OECD An<-­‐Bribery Conven<on Current legisla2ve and policy processes: Financial Services Bill 2012; Crime and Courts Bill 2012; forthcoming post-­‐legisla<ve scru<ny of the Bribery Act 2010; FCO White Paper (2012): The Overseas Territories: Security, Success and Stability EXPLANATORY NOTE: Protec<on of Witnesses CLICK HERE TO GO TO GLOSSARY CLICK HERE TO GO TO CORRUPTION MAPS The provision of physical protec-on to witnesses, experts and vic-ms, before, during and a4er a trial, usually by the police. Interna2onal Conven2ons: UNCAC Art. 32; UN Conven<on against Transna<onal Organised Crime Arts. 24-­‐25 UK legal instruments: Contempt of Court Act 1981, Youth Jus<ce and Criminal Evidence Act 1999, Serious Organised Crime and Police Act 2005, Coroners and Jus<ce Act 2009, Criminal Procedure Rules 2010, CPS legal guidance on witness protec<on Relevant agencies and organisa2ons: Ministry of Jus<ce, Met Police, City of London Police, local police authori<es, SOCA, SFO, CPS/DPP, Associa<on of Chief Police Officers (www.acpo.police.uk) Extent of protec2on offered:   Op<on for witness anonymity during trial (Coroners and Jus<ce Act 2009)   Op<on for witnesses to give evidence by special means, due to in<mida<on. Examples include screening the witness from the accused; evidence by live link; evidence given in private (Youth Jus<ce and Criminal Evidence Act 1999)   Op<on for a trial to be held in camera, i.e. closed rather than open court (Criminal Procedure Rules 2010)   Prosecutor’s applica<on for a repor2ng direc2on to ensure name of witness is withheld from publica<on (Youth Jus<ce and Criminal Evidence Act 1999; Contempt of Court Act 1981)   For persons who have provided crucial evidence and against whom there is a substan<al threat, the police may provide various protec<on measures, including reloca2on to another part of the UK and change of iden2ty (Serious Organised Crime and Police Act 2005) Policy challenges: CLICK HERE TO VIEW PROTECTION OF WITNESSES INFO BRIEFING -­‐ Ensuring consistent and fair treatment of people under witness protec<on orders within UK; currently managed by local police authori<es -­‐  Addressing protected witnesses’ concerns about feeling isolated and abandoned; no means of complaint or review -­‐ Managing risk of conflict of interest or collusion when witness protec<on is managed by the same police authori<es responsible for inves<ga<ng the crime Forthcoming Government policy change: Crime and Courts Bill 2012 EXPLANATORY NOTE: Protec<on of Whistleblowers CLICK HERE TO GO TO GLOSSARY CLICK HERE TO GO TO CORRUPTION MAPS Protec-on of whistle-­‐blowers refers to the protec-on of persons who report suspicion of corrup-on, whether or not a prosecu-on follows. Interna2onal conven2ons: UNCAC Art. 33 UK legal instruments: Public Interest Disclosure Act 1998; Bribery Act 2010 Guidance (for companies), Serious Organised Crime and Police Act 2005 Relevant agencies and organisa2ons: BIS, Met Police, City of London Police, local police authori<es, SOCA, SFO, CPS/DPP; Public Concern at Work (www.pcaw.org.uk) Extent of protec2on offered under the PID Act:   Employees are protected from “detriment” in the event that they raise an issue of public concern that they have found out about through their workplace, either internally or to an external regulator   Employees have a right to complain to an employment tribunal in the event that they are dismissed or vic<mised for raising an issue of public concern regarding their workplace   Gagging clauses in employment contracts and severance agreements are void to the extent that they conflict with PID Act protec<on BIS provides advice to employers and employees on employment policy and legisla<on, including the PID Act. Extent of protec2on offered under SOCPA:   the Director of, inter alia, the SFO has power to grant immunity from prosecu<on, give undertakings as to the use of evidence and enter into agreements that can result in a reduc<on in sentence for whistleblowers who are also suspects Policy challenges: CLICK HERE TO VIEW PROTECTION OF WHISTLEBLOWERS INFO BRIEFING -­‐  Ensuring promo<on of an<-­‐corrup<on measures and whistleblowing protec<on under the PID Act, in the public and private sectors -­‐ Engaging ci<zens in the fight against corrup<on. Some 77% of all UK adults are not aware of the PID Act and the protec<ons it offers (2011 YouGov poll for Public Concern at Work) -­‐  Publishing details of legal claims taken under the PID Act, including seZled claims, to improve transparency and accountability -­‐  Certain sectors face unique or persistent public interest concerns (care of vulnerable people, health, prisons, social housing) -­‐  Ensuring that companies are promo<ng sound internal whistle-­‐blowing prac<ces in their compliance with the Bribery Act 2010 Forthcoming Government policy change: Enterprise and Regulatory Reform Bill 2012; forthcoming post-­‐legisla<ve scru<ny of the Bribery Act 2010 EXPLANATORY NOTE: Mutual Legal Assistance CLICK HERE TO GO TO GLOSSARY CLICK HERE TO GO TO CORRUPTION MAPS Mutual legal assistance refers to an agreement between two (or more) countries to collect and share informa-on to help enforce criminal laws. This may include seizure of property, issuing arrest warrants, or extradi-on. Interna2onal conven2ons: UNCAC Art. 46; EU Mutual Legal Assistance Conven<on (2000) UK legal instruments: Criminal Jus<ce (Interna<onal Co-­‐opera<on) Act 1990, Proceeds of Crime Act 2002, Extradi<on Act 2003, Crime (Interna<onal Co-­‐opera<on) Act 2003, CPS legal guidance on interna<onal evidence; Home Office (UKCA) Mutual Legal Assistance Guidelines; European Arrest Warrant. The UK is party to more than 35 mul<lateral conven<ons, bilateral trea<es and MoUs regarding mutual legal assistance (MLA). Relevant agencies and organisa2ons: FCO; Home Office (UKCA); relevant inves<ga<ve authori<es (SFO, SOCA, Met Police, CofL Police); HMRC; Interna<onal Centre for Asset Recovery (www.assetrecovery.org); Fair Trials Interna<onal (www.fairtrials.net); Amnesty Interna<onal (www.amnesty.org.uk) UK administra2ve arrangements:   FCO manages the UK’s rela<ons with other countries, including the establishment of trea<es.   Incoming MLA requests: the Home Office (UKCA) handles all requests from other countries through a central office. Cases are then referred to relevant authori<es, including SFO, Met Police, and CPS. HMRC handles directly any requests for UK MLA in smuggling and other fiscal maZers and FSA does likewise for financial regulatory maZers.   Outgoing MLA requests: UK inves<ga<ve and prosecutorial authori<es send their own requests for MLA to overseas states, and the procedure will depend on the state involved. Policy challenges: CLICK HERE TO VIEW MUTUAL LEGAL ASSISTANCE INFO BRIEFING -­‐ Managing risks associated with <meframes in processing MLA requests, both within the UK and in respect of UK requests overseas -­‐ Managing risks associated with the spread of MLA responsibili<es across mul<ple departments and agencies within the UK -­‐  Recognising the poten<al for diploma<c risk between the overseas state and the UK; attudes and opinions of local overseas staff to whom a MLA request is made -­‐  Ensuring the existence of applicable legal instruments to facilitate the jurisdic<onal reach of the Bribery Act 2010 -­‐  Ensuring that UK responses to overseas requests for MLA adequately protect human rights of UK ci<zens -­‐ Publishing data on requests made within the UK and requests made by the UK abroad, to facilitate scru<ny and provide transparency Current legisla2ve and policy processes: Crime and Courts Bill 2012; Home Secretary’s proposed reform of extradi<on laws and opt-­‐out from European Arrest Warrants and Inves<ga<on Orders (Oct 2012)